Canada’s official currency is Canadian Dollar (CAD). Its abbreviation is $ and it can be divided into 100 cents. The five most held reserve currencies in the world are the US dollar, the EUR, the yen, the sterling, and the CAD. Central banks in Canada where the Canadian dollar is popularly used are affected by the country’s political and legal systems which are considered stable. This dollar-dominated currency is also affected by the Canadian government which has a strong sovereign position when it comes to the country’s relative economic soundness.